Introduction to the Business Environment - Doc

   

Added on  2020-10-22

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Introduction to theBusiness Environment
Introduction to the Business Environment - Doc_1
EXECUTIVE SUMMARYThe present report is based on British Petroleum which is affected by the businessenvironment in which it operates. This report contains various models in order to analyse thecompetitive advantages of the company. In this report, PESTLE analysis has been examinedwhich will aid the managers of the company in order to examine the external environment. It hasbeen find that in UK Brexit take place which affect the overall working environment of theorganisation in a negative manner, but with the passing time company can overcome with thisfactor by expanding their business. Also, Porter's five force model has also been examined in thisreport with the help of which managers of the company can examine the overall industry in aneffective manner. After analysing this model, it has been analysed that bargaining power ofbuyers is very high as they can easily switch to other brand. For this, company has to provideattractive offers and satisfy the needs of customers in order to retain them for long period oftime. In addition to this, SWOT analysis has also been included in this report with the help ofcompany can analyse internal strengths and weakness of the company as well as externalopportunities and threats for the organisation. After analysing this, it has been analysed that oneof the opportunity for the company is they can increase their exports by continuous improvementin their R&D. At last, VRIO model has been examined in this report, with the help of managersof the company can examine valuable as well as rare resources which will aid the company ingaining competitive advantages at the marketplace.
Introduction to the Business Environment - Doc_2
Table of ContentsEXECUTIVE SUMMARY ............................................................................................................2INTRODUCTION...........................................................................................................................4PESTEL ANALYSIS .....................................................................................................................4PORTER'S FIVE FORCES FRAMEWORK .................................................................................7SWOT ANALYSIS.........................................................................................................................9VRIO FRAMEWORK...................................................................................................................10REFLECTION ..............................................................................................................................13CONCLUSION..............................................................................................................................15REFERENCES..............................................................................................................................16
Introduction to the Business Environment - Doc_3
INTRODUCTIONBritish Petroleum is one of the five biggest oil & gas company across the world (Botha,Kourie and Snyman, 2014). It is one of the leading Oil & Gas multinational company,headquartered in London, UK. It was founded on 14 April, 1909, by William Knox D'Arcy. Thecompany was originally known as Anglo-Persian Oil Company. British Petroleum is chosen asthe base company in this present report. In this report, various topics are going to be coveredwhich includes PESTLE analysis in order to identify the external environment, Porter's five forcemodel, VRIO model for examining the internal environment along with SWOT analysis ofBritish Petroleum. With the help of all these models company can take strategic decisions andgain competitive advantages at the market place. PESTEL ANALYSISMacro environment: It is the combination of all those forces which providesopportunities as well as poses threats for the success of any organisation. These factors aregenerally uncontrollable by the managers and influences the decision making. The macro factorswhich impact the performance of British Petroleum are identified with the help of PestleAnalysis.PESTEL Analysis: This tool is used by the company managers for the purpose ofanalysing along with monitoring the macro factors of environment (Bowerman and Van Wart,2014). Such framework helps in performing organisational operations by carefully tracking thefactors and achieving success. It is used for viewing whole environment through different angles.The Pestle analysis of selected firm is as follows:Political: Such factor is helpful in determining the political parties or government ruleswhich influences the industry or an economy. It includes tax policies, trade tariffs andmany more. The UK country is facing political situation of the separation of UK fromEuropean Unions. Due to such situation, prices of oil and gas of the selected businessgot down. Negative factors includes restriction of free entry for the nationals of EU,rising costs, payment of higher custom taxes and many more. Positive factors withBrexit deal includes decreased overcrowding, bring skilled talent in UK, overcomingemployment situations. Political factors related to selected business includes intercountries relations, trading policies and so on influences the growth of company.
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